RI Soaring Domestic Gas Absorption Likely to Hint Future Export Halt

By Editorial Team 14/02/2024
gas supply
Summary

The Indonesian Energy and Mineral Resources Ministry realized domestic natural gas utilization in 2023, reaching 3.745 million metric square feet per day (MMscfd), accounting for 68.2 percent of the total production, with the remaining being exported. "The increased utilization of gas is predominantly for domestic purposes, two-thirds of which are directed towards the industrial sector," Tutuka Ariadji, the Energy Ministry's Director General of Oil and Gas, stated on Feb 13.

Compared to 2022, domestic gas utilization only saw a modest increase of 1.68 percent. Most domestic natural gas utilization is allocated to the industrial sector at 1,516 MMscfd, with 16 MMscfd dedicated to household gas networks. The installed gas network currently serves around 900,000 household connections and is slated for further expansion. "If we assume that the gas network replaces 3-kilogram LPG cylinders, it would result in subsidy savings of Rp 1.6 trillion and foreign exchange savings of approximately US$140 million," Ariana Soemanto, Head of the Oil and Gas Testing Center, stated.

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